LM8

• Beneish M-Score -1.6553 (76th percentile among Vietnamese peers): the score is above many peers and the M-Score rose by +0.93 year-over-year. The M-Score is a composite signalling unusual accounting patterns; in the Vietnamese sample ~28% cross the US -1.78 cutoff, so the high peer percentile and the YoY rise are notable.
• DSRI (Days Sales Receivable Index) = 1.4825: this measures the change in receivables relative to sales; a value >1 means receivables are growing faster than sales, consistent with the very low receivables and revenue quality scores.
• Cash conversion (operating cash flow / net profit, 3-year) = 2.16 (77th percentile): this metric shows profit is not converting into operating cash (higher percentile = worse in the Vietnam ranking), and the Earnings-Quality component 'Cash conversion' is scored 0.0/100.
• Receivables outside the trade cycle = 0.6% of total assets (26th percentile) but 'Receivables quality' = 0.0/100 and 'Revenue quality' = 0.0/100: although receivables outside the trade cycle are not large in absolute balance, the quality flags suggest recognition/timing or revenue persistence concerns.
• Altman Z-Score = 1.54 (distress zone): this bankruptcy-distance metric places the company in the distress zone, indicating weak financial-health ratios used in the Z-Score.
• Earnings Quality Score = 19.5/100 with Accruals quality 48.1/100 and Margin quality 50.0/100: overall low earnings-quality aggregate, driven especially by cash/receivable/revenue items.
• SGAI (Sales, General & Admin index) = 1.0497 (>1): SG&A rose relative to sales, which can pressure margins and may reflect discretionary expense timing or classification changes.
• Year‑on‑year movement in the M-Score (+0.93) while Beneish consecutive-year correlation is low (0.06): the change is an additional signal that accounting behaviour shifted materially in the latest period.

• TATA (Total Accruals to Total Assets) = 0.1446: this measures accruals intensity; the reported level is relatively low compared with some manipulation cases (TATA is part of Beneish’s accrual evidence).
• GMI (Gross Margin Index) = 0.7085 (<1): this index measures deterioration or improvement in gross margins; a value below 1 indicates gross margins improved year-over-year.
• AQI (Asset Quality Index) = 0.7107 (<1): this measures the proportion of non-current, less-depreciable assets; a value <1 suggests asset composition moved toward higher-quality (or more depreciable) assets rather than growth in potentially capitalized/illiquid items.
• SGI (Sales Growth Index) = 0.9837 (~1 and slightly <1): sales growth was roughly flat or slightly down, reducing one common pressure to manipulate revenue recognition to meet growth targets.
• Receivables outside the trade cycle only 0.6% of total assets (26th percentile): in absolute balance-sheet terms these non-trade receivables are small relative to assets, which tempers some concerns about hidden loans or large related-party receivables in the notes.

A state-owned parent entity, Tổng Công ty lắp máy Việt Nam, holds 36.0% and three individuals hold 15.0%, 9.7% and 4.7% respectively; ownership is concentrated with a large institutional holder plus meaningful individual stakes. Director-deal registrations net +0.32% of shares outstanding over the past year (one sale registration for 120,000 shares and one purchase registration for 150,000 shares); these are exchange registrations of intended trades, not executed trades.

• Compare the three-year operating cash flows and the consolidated cash-flow statement lines to the net profit line for FY2023–FY2025 to verify the cash-conversion ratio of 2.16 and identify timing differences in working capital.
• Inspect the receivables, prepayments and related‑party balances in the notes (trade receivables, loans to/from related parties, and other long-term receivables) to reconcile the 0.6% of assets classified as receivables outside the trade cycle.
• Review the disclosure for SG&A expense and revenue recognition policies (accounting policy note and any revenue schedules) to understand drivers of SGAI = 1.0497 and the 0.0/100 revenue-quality score.
• Confirm statutory-loss and equity lines in the audited financial statements and the auditor’s report: the published statements show no accumulated undistributed losses, parent net loss in 0 consecutive years up to FY2025, positive owner’s equity (excluding minority interest), and the company does not meet the statutory loss tests cited (Decree 155/2020 Art.120(1)(e) as amended).